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Here is the link to the full manual:http://support.sony-asia.com.edgesuite.net/consumer/IM/4110401121.pdf

Before connecting your devices...The signals
that enter the TV and connected devices will need to be output in the
correct format using the suitable connections. Below are the different
types of video connectors. When connecting the TV, use the inputs that
are available on your devices that provide the best video performance.Video performance level
Name
Aspect
Signal transmitted
Separate audio connection required
HDMI
Picture + Sound
No
DVI*1
Picture
Yes
L-AUDIO-R
Component video
Picture
S-Video
Picture
Composite video
Picture
RF/Coaxial
Picture + Sound
No
*1 If the equipment has a DVI jack
and not an HDMI jack, connect the DVI jack to the HDMI IN (with
HDMI-to-DVI cable and/or adapter jack), and connect the audio jack to
the AUDIO IN (L/R) jacks of HDMI IN. (The DVI connector is for video
signals only)
To enjoy the
best visual experience with your system, it is preferable to connect
your best devices with the highest quality connections available. For
example: your Blu-Ray Disc player or HD Set Top Box with HDMI, followed
by your DVD player with Component, then your Video Cassette Recorder
with S-video etc.Note: The quality of the picture also strongly depends on the quality of the cable used.
HDMI
The High-Definition
Multimedia Interface (HDMI) is an all-digital audio/video interface
capable of transmitting high definition video and audio signals. HDMI
provides an interface between any compatible digital audio/video source,
such as a set-top box, a DVD player, a PC, a video game system, or an
AV receiver and a compatible digital audio and/or video monitor, such as
a digital television (DTV).
DVI
The Digital Visual
Interface is capable of transmitting high definition video, but does not
transmit sound. You will need to use the audio connectors of your
device (usually Optical/Coaxial digital, or RCA). It is possible to
connect an HDMI device to a DVI device using a HDMI to DVI adapter.
Component video
Component video is an
analogue connection. It is capable of transmitting high definition
signals. Component does not transmit sound. You will need to use the
audio connectors of your device (usually Optical/Coaxial digital, or
RCA)
S-Video
Separate video,
abbreviated S-Video and also known as Y/C is an analogue video signal
that carries the video data as two separate signals (brightness and
colour), unlike composite video which carries the entire set of signals
in one signal line. S-Video, as most commonly implemented, carries
standard definition video. It does not carry audio on the same cable.
Composite video
Composite video is an
analogue video (no sound) format. This is the connector you should use
if you do not have any other connector available, in terms of quality.
RF/Coaxial
RF Coaxial Cable
connection is used for transferring television signals (audio and video)
originating from an antenna or cable box to a Television.

you need to select High definition output on the PS3. Connect it via hdmi and via standard lead switch the tv to standard so you can see the picture then select high definition output. Switch over to hdmi and you should see a picture

"These are the optional uses of a Playstation 3, not just playing video games this is a lot cooler. Video connections on a Playstation 3, now this is the back of a standard Playstation 3. I'll show you really quick; we have our power, AV outs, digital audio, LAN for internet, HDMI out so pretty much if you want to get high definition picture quality you're going to have to go out and get yourself a HDMI cable. It will go from HDMI the Playstation 3 to the back of your HDTV, that is your HDMI cable this will carry audio and video in one cable. Of course if you want to go on the internet you have the choice of the wireless if you do buy a wireless, if not you can just plug in your inthernet cable right there. We'll skip the audio for now cause that is the next chapter and we'll go to the EV out, you have two options here if you still want high definition video and you don't have HDMI capabilities on your TV you can still go component. If your TV will allow it, component is the RGB that is your red, blue and green cables so with these cables you can still have a high definition signal broadcast to your TV through this output right here. If you are using the standard TV standard definition you don't have the capabilities of high definition yet it doesn't matter you'll get there. Just go ahead and grab one of the standard cables which is your RCA cables and this will be your yellow, white and red. This of course yellow is for the video, white is for your left audio and red is for your right audio so with these cables you can plug up to any standard TV even a high definition TV but only give you standard definition picture quality. So these are the video connections on a Playstation 3."

Hi, first of all you need a high definition source. I'm not sure if your cable box is HD but lets take it as an example. The component leads which you are using isn't 'true' HD video quality, what you need is a hdmi cable from your source to your TV.

Your cable box maybe HD with a HDMI output, if it is then you need the lead to come out of the cable box into your tv's HDMI input using a HDMI lead. Then you switch your TV's source to the HDMI input and it then should be producing a HD quality picture, but to truly get the full HD experience you may want to subscripe to a HD channel or purchase a blueray player becasue most cable TV channels are upscaled to HD and the definition is not as good as on a blue ray disc or a true HD channel.

So in conclusion the cable and input you are using is not designed for HD input. I believe your TV is HD, check for HDMI inputs or DVI inputs.

This may not be DVI issue.
I connected DVD player HDMI ----> DVI ( Dell W3000) LCD TV.
Later I found that Dell TV version of DVI does not support HDCP protocol ( High Definition Content Protection protocol). So I could not play HDMI to DVI movies from my DVD player instead I use Y Pb Pr -- this works ok.

Hope this helps... I am not use PS3 enforces HDCP - I assume Sony linked with Sony Pictures would enforce HDCP on HDMI cable.